Subsequent Event

6 Months Ended

Jun. 30, 2017

15.

SUBSEQUENT EVENT

On July 31, 2017, the Company, through its newly-formed,wholly-owned subsidiary, Trex Commercial Products, Inc., entered into a definitive agreement with Staging Concepts Acquisition, LLC (SC) and on that date acquired certain assets and liabilities of SC for $71.5 million in cash. The purchase price will be subject to adjustment pending final determination of working capital at closing. The Company used cash on hand and funding from its existing revolving credit facility to acquire the business. The acquired business designs, engineers and markets modular and architectural railing systems and solutions for the commercial, some consumer and multifamily markets, and provides staging, acoustical and seating systems for commercial markets, including sports stadiums and performing arts venues. As a result of the purchase, the Company will gain access to growing commercial markets, expand its custom design and engineering capabilities, and add the contract architect and specifier communities as new channels for Trex products. The Company’s 2017 third quarter consolidated results of operations will include the operating results of the acquired business, following the date of acquisition. The Company’s consolidated balance sheet at September 30, 2017 will include the acquired assets and any liabilities assumed.